Canopy Growth wins UK’s first medical cannabis bulk import licence

Licence grant could boost UK supply for waiting patients

                                

The world’s largest publicly traded cannabis company, Canopy Growth, has been awarded the first UK licence for bulk imports of medical cannabis, a move that could boost customer confidence in the Canadian business.

Although Medical cannabis was legalised in the UK in November 2018, patients have been experiencing delays because specialist wholesalers have not been granted licences. Canopy Growth will now be able to store the drug in bulk at its top-secret Buckinghamshire warehouse to send out the next day.

The news is expected to improve sentiment towards the company, which has suffered from the sudden departure of co-founder and chief executive Bruce Linton back in July.

The company has also received negative customer feedback and struggled with perceived lack of demand. The cannabis industry has experienced some upheaval in 2019, with a surge in entrants and political and economic instability compounding the rising concerns around vaping products.

Since 2018 Canopy’s share price has fallen by more than 65 per cent. The company is backed by Corona beer maker Constellation Brands. It is not expected to turn a profit until 2022, while rival Aurora has said it will be profitable in 2020.

Canopy shares, which hit all-time lows on Friday October 11, rose on the news.